5 questions to ask when evaluating your financial advisor

Taxes for Deceased People: Some Tips to Ease This Burden

Losing a loved one is a challenge in itself, but how can you avoid adding additional stress when managing your taxes and inheritance?

• Also read: Taxes for deceased persons: Which declarations should be submitted?

• Also read: Five mistakes to avoid when filing your taxes

It can be difficult for the executor to manage a loved one's personal finances after their death, especially if they are unfamiliar with their financial situation. For this reason, organization is essential because the tax consequences can affect both the heirs and the surviving spouse, said Yannick Lemay, spokesman for H&R Block.

Here are some tips to help guide you:

1. First, you must notify the financial institution of the person's death so that the person's accounts can be frozen. The same applies to his joint accounts.

2. You will then need to consult the notary to carry out the will research to determine who the executor is. The latter is responsible for signing the deceased's declarations.

3. The expert then recommends consulting a tax advisor to avoid unpleasant surprises when processing tax returns.

4. It is important to wait to distribute funds from the estate to ensure that you can pay the amounts owed to the state. The executor must then apply for a clearance certificate, i.e. approval from the tax office to process the estate. This document prevents him from being held personally liable for the amounts owed if there is no money to pay the taxes.

5. It may happen that a person continues to receive certain income after their death. In such a case, a death notice is required so that these inflows of money can be stopped. Any amounts paid in excess must then be refunded.